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Originally written by Nick Owens on Small Business
Record numbers of new businesses are setting up amid the Covid-19 pandemic as entrepreneurs show a determination to work their way out of the financial crisis.
The stories behind many of those newly formed businesses is revealed in a special report, Starting A Business In A Pandemic, published by Harper James Solicitors. Here the national law firm, designed to support new businesses from start-up to scale-up, share eight legal considerations that every entrepreneur should be aware of.
1. Founders Agreement
You and your co-founders may start out as best friends, but nothing can sour a relationship more quickly than differences about business.
A founders’ agreement will clearly set out all the answers to essential questions such as: what is the company’s mission and what is your ultimate goal? What are the roles and responsibilities of each team member? And how will equity be owned and when will shares vest? As businesses grow, the formalities tend to multiply and having a clear founders’ agreement will make these formalities easier (and cheaper) to complete.
2. Shareholder and investor agreements
Setting up a shareholders’ agreement can help take your start-up to the next stage. If you are funding your start-up yourself, then